tv Markets Now FOX Business January 30, 2013 1:00pm-3:00pm EST
streamers down. surprise contraction in gdp. the economy shrinking for the first time in three and a half years. lori: also, betting big on library. research in motion changing its name and unveiling the highly anticipated blackberry 10 device. coming up in minutes. the ceo thorsten heins. melissa: and it turns out japan's two largest airlines have had problems with the dreamliner battery long before the issue. time for stocks as we do every 15 minutes, let's head to the floor of the new york stock exchange. nicole petallides. those gdp numbers keeping the dow away from 14,000. nicole: they certainly did throughout the morning. it brings concern when there is no good gdp numbers. there has been less on defense and concerns, let's take a look
now, much like we have seen recently where the dow goes over that one change line over and over again. today seems to be no different as we are back in positive territory. we haven't taken out our highs we saw yesterday, five year highs for the s&p 500, dow jones the thrills, russell 2000. we have had a lot of names and a lot of these indexes hitting these highs we have not seen since 2007. that being said, still concerned about the economy and jobs. the market has been running up, lots of traders say it is time to take a little bit of a breather, or we overbought at these levels? plenty of people i know that has taken money off the table the last couple of days. here's a look at the dow right now up 7%. the banking index, looking pretty good. back to you. melissa: nicole, thank you so much. lori: investors pausing, likely
taken aback by the week o weaken expected numbers by gdp. a deep decline in defense spending led to the first contraction in four years. the senior equity strategist from wells fargo advisors. great to see you back here. if the market had been ignoring the numbers, is this a wake-up call? >> the expectations were the consensus was 1-2, something like that. a weaker than expected, but we expectations to begin with. really the market is looking at things like consumer spending which is good in that report, looking at capital spending which is good, wages were okay. the market is looking at the silver lining but clearly we are in a very slow growth economy that will not change anytime soon. fortunately valuations are not stretched, they are not shaped but they're somewhat in the gray zone. those things are all helping the
market. the federal reserve will tell us we have to keep pumping money in this afternoon when they announce. lori: which will continue the wealth effect. on the economy and gdp report, it was driven largely by a decline in government spending and defense spending. before the fiscal cliff deal came into effect, and not before sequestration could also happen, deeper defense cutting. if that lack of government spending which has been supporting economic growth up until the fourth quarter, two consecutive quarters of negative gdp growth means recession. so what is the likelihood that whatever you think of government spending the lack of it could mean an actual recession. >> if you look at the former law, government spending contributes to growth. we have to wean ourselves, the economy has become addicted to
government spending. technically you are right, two quarters of negative gdp, minus 0.1% isn't the end of the world, but technically that would be a recession. i don't think we will see a recession, we will see modest growth in the first, 20 .5% growth in 2013. that is lower than what we expected in 2012, but action that we 2.2, so it was a little bit better than we expected in 2012 but i don't think we are headed toward a recession. lori: so let's talk about the advice you're getting your clients right now. you expect the dow to retrace all-time highs anytime soon, are you all in, are you long equities, what advice are you giving to your investors? >> we are all in. looking for pullbacks, got a couple of good ones. we would love to see a pullback
in 2013 because there is still a lot of retail investors with plenty of cash on the sidelines. you're starting to see little bit of chasing, but just a little bit would love to see washington controversy on these spending cuts to kick in. what we want our investors, we want them invested in substantive economically sensitive sectors like consumer discretionary, we want them in technology, those type of things. we don't want them to be defensive. lori: i am running short on time, sorry, scott. you're always a great sport, see you soon. >> thanks a lot. lori: we want to remind you guys to keep it here for the fed decision at two: i 15 eastern. melissa: shares of blackberry, no longer research in motion, trading right now down about
$0.82 they're on the day as they unveiled two versions of the new blackberry 10 device. shibani joshi had a chance to speak with blackberry new ceo thorsten heins on the changes. >> don't call it research in motion anymore. the company turning over a new leaf today unveiling its new blackberry 10 operative system and two brand-new phones. compare it to my old blackberry in a second, but the company stripping the inside and changing the name plates on the outside called "blackberry" making a lot of sense since everybody knows the bread and butter product is the blackberry. just inside this event were about 1000 people attended. they had a chance to talk to thorsten heins and asked in a couple of things. what about the rumors of strategic partnerships, a buyo
buyout, asking about the stock prices today. any disappointment and any issues with delivery dates in march. take a listen to what he had to say. >> they announce they will strongly support blackberry 10. if you look at the numbers, they started launching in two weeks. the difference really is the testing process. a very intense testing process and we want to respect the testing of our carriers. that is why it is behind the other regions. we are working with the carriers to speed it up but that is the best we can say at the moment. >> any risk of march not been the target date in the u.s.? >> no, absolutely not. >> there was talk about a possible buyout with lenovo.
the company focusing on delivering blackberry 10. are you continuing with your strategic review? what do you say to those talks rumors that came out this week's? >> i will not speculate on any rumors. if we would announce something, we have to do in public since it is a publicly traded company. with the improved position of rim we are looking at what can we do, what products should we be doing in order to be a leader in mobile computing. when a knowledge of other segments as well to drive those segments so we are continuing to do our homework and we will let you know the moment we have something. >> last question. your target audience, is it existing blackberry customer or trying to claw back some market share, who do you go after first? >> absolutely i want to claw back market share. a whole new user experience.
we love our base, that is why we brought the variety, but we want to grow and we want to win back the hearts and the minds. >> one-year, five years? >> if you look at the cycles of companies that have reentered, it is about one year, one and a half year cycle. >> so he is after the market share. there is no chance there will be any delays in getting a product to the market in march. he says they are open to strategic reviews, he did not shut that down. this is a hail mary pass that kicked off today in downtown manhattan. compare it to my old blackberry, i think i it'll be a nice upgrae for all. melissa: cannot wait to see that in person. we look at the analyst take on blackberry 10's launch with analysts david ernest coming up.
lori: it is round three from facebook's quarterly earnings. what you should be watching for for the social media giant reporting after the bell today. melissa: and bearish weekly supply data. we are heading to the cme to find out why. and take a look at metals as well as we had out to break. a good day for commodities. look at silver of 3%. we shoul will be right back. [ woman ] if you have the audacity to believe
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lori: favorite segment, one of them at least good time to make money with perlstein. this hour he has a follow-up with a silver lining. charles: i kind of like silver down here. it has made a nice move. a couple of ways to play it. silver went up $1, it would go up $2. you can see the performance is
volatile. this is more of a trading vehicle, like you for somebody who wants silver. if you look longer-term you want to go with the etf route. that is a less riskier play. people should also consider claims as well. lori: how do you get them? charles: they would schedule january 23 they were going to open it up to the public but a whole lot of silver deals you can buy them through now. a big box, canadians with the polar bear on the back and the reason i have got them. if anybody gets 48 on the report card, they get a claim. i ran out of claims last year. they love it, they put it away, they save it. it is great for everybody.
lori: what they have to do to get a gold coin? charles: they have to graduate college. melissa: you always knew when you look at the gold and silver the move in silver is always so much bigger on a percentage based. it is so much more volatile. if you amp that up even higher, it is really getting a lot of beta. if you wanted to jump in now, that is where you will get the most. charles: economic data looks really sloppy. silver made a breakout. your point if it does that is a gigantic payouts. lori: do you look at that strategy at all? charles: it is contradictory. it is obvious at least it is not something you can't argue there is no value.
some argue what does gold do? lori: pretty flashy jewelry. charles: so there you have it. lori: thank you. melissa: let's check the market, nicole petallides on the floor of the new york stock exchange. watching refiners. nicole: taking a look at a couple of key names. most of these names came out with their quarterly reports and names. a look at that one hitting 52-week highs, both of these after the earning releases. all of the imports, the gulf coast refineries in favor of u.s. production. the chief executive officers will be looking at california, for example. marathon petroleum the same thing focusing on domestic crude. you can get both of these stocks.
i was taking a look at the 52-week highs on both of these. that is a one week chart. up about 92% over the last 52 weeks. quite a run up. winners in these two energy names and domestic crude. back to you. melissa: later on, fox business exclusive, it is a parody showing hospital workers literally blocking the door to a hospital to prevent patients from going into reason, money that doctors are trying to recruit their colleagues to join the organization. a group that pays doctors based on how much or how little they see patients under obamacare. the fewer patients they see, the more money they make. elizabeth macdonald with a fox business exclusive ahead. lori: i think we made better quality movies in college. that was pretty cheesy.
also, it has been three weeks since the first dreamliner incident came to light. but japan two biggest airlines have had troubles long before that. the latest details ahead. melissa: look at how the dollar is faring. the dow right now up one point. we will be right back. all stations come over to mission a for a final go.
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lori: boeing topping estimates despite dropping 30% from a year ago. his arrest came as boeing's dreamliner planes are grounded as we have reported. forecasting no significant impact for 2013 because of the grounding. we will have to see about that, but for now that is what they are saying. we can work national trust patient safety board has asked boeing fretful operating history of the batteries in question. for the latest on this ntsb request, let's go to dan springer.
have they np >> no, they haven't. they have done the first level of investigation haven't been able to pinpoint the exact problems so going to a deeper level. as mentioned is not hurting the bottom line yet. just mentioned the company took in $81.7 billion in revenue, that is a record last year. it is not hurting the bottom line yet. the battery issues with the 787 did not sneak up on boeing but more details. replacing 10 of the lithium-ion batteries since may. half of them were due to low voltage. it is much higher as reported by source. reporting 100 batteries had to be replaced but not all of them suffered a failure. melissa: not confirm the number for me, but downplayed the whole issue saying batteries are replaceable unit on airplanes in
the replace five or six per day. the company issued a statement saying we have not seen 787 battery replacements occurring as a result of a safety concern. the batteries are being returned because of our robust protection scheme shows no battery deeply discharged or improperly disconnected can be used. thea normal. the national transportation safety board says the whole battery history is now part of its investigation of the 787. the fleet of 50 grounded two weeks ago after two lithium-ion batteries overheated. the ntsb is taking a lot deeper with the help of the military, by the way. political parts are being tested, naval surface lab in maryland. the dreamliner nightmare has not hurt boeing's bottom line yet. fourth-quarter earnings close to a billion dollars and as you
mentioned beating estimates and they have $13 billion on hand to weather the storm for the time being. they have not been able to deliver 787 while the grounding has taken effect. they're sitting around waiting for the grounding to be lifted before they can deliver them to new customers. lori: many thanks. melissa: for more on what all this means for boeing in 2013, let's bring in mail from morningstar. you heard the record revenues, $13 billion in cash on hand. the ceo says debt cancellations and steve earle's remain below the historical average. they're keeping production going. does it make you feel better about their ability to weather the storm or the same, what is your reaction? speak i think it would make me feel better, overall commentary in the space of the 2012 year was really good. they had record deliveries.
the last time they had more than 600 with 1999. they had 1 1200 orders. i think they have many years of potential visibility in going forward. i would say the 787 is a problem, for sure, but i don't think it is something -- melissa: what would have to happen to change your opinion on that? the number of cancellations? what would give you pause related to this crisis? >> is a timing delay. if we get to the production rate currently embedded in 787 has to change over the near-term, and that leads to the inability to bring down the cost for manufacturing to bring down operating in the long run. those are sort of the things to
think about with the 787. melissa: this made it seem like maybe they knew there was a problem and didn't do something about it. that report saying they replaced 10 batteries, five of them showed a similar problem, that is the sentiment happened to the batteries that overheated. how damning is it for them if they knew there was a problem and they did not act quickly enough? >> it is difficult to accuse someone of knowing and not fixing it. i don't think boeing wins by having the problem out there. it doesn't make a lot of sense from the credibility perspective but i think a lot of issues have been, normally considered normal, but i don't know that i'm in a position because somebody came out with more replacements. melissa: i am not sure if you are accusing, but how they're handling this situation. they're making good progress in
the electrical problems, at the same time you have the ntsb coming out saying as recently as yesterday once again they don't think they're getting any closer to figuring out what happened. those are two completely different statements. how do you reconcile them? >> boeing doesn't win by getting in front of the regulators so they have to stay on the market basically one point to say we are trying our hardest to keep things going and authorities will take the lead on this. if you think about it the other way, boeing says we don't think it is a big problem, the authorities have more of a reason to keep them grounded for longer time getting too aggressive on the issues. we are managing the situation around the different authoriti authorities. europe wants to get involved.
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melissa: it is too i am for stocks as we dead every 15 minutes. let's head to the floor of the new york stock exchange. nicole petallides is standing by. >> the dow is up six points, about 40 points away from dow 14,000. the see the nasdaq with an up arrow but just fractionly. squeezing that out and s&p slightly to the downside. today is the fed day, the seg day. this is the day we'll hear more from the fomc, from ben bernanke. to see what is going on with money printing. traders from wall street will carefully listen to the 2:00 p.m. hour for every single word. that is what they look at. they look at the language. going forward, what are the promises and economic outlook in the 2:00 p.m. hour as we eagerly await to hear from the fomc. back to you. melissa: nicole, thanks so much. lori: a big day for commodities as oil continues trading its highest level in four months.
commodities gearing up for the fed decision. let's get the latest. we head to floor toe the pits of the cme with sandra smith and today's trade. hey, sandra. >> until we see the conclusion of that fed meeting, oil prices only up a few pennies on the session they're continuing those gains to four-month highs. oil at $97.62 a barrel. what traders are watching down here not just the oil but all the energy complex is higher ahead of the fed. rbob gasoline up a couple percent on the session. natural gas prices bouncing back from a major selloff. heating oil is flat but there is a bid in the commodities market as a result of expectation that is the fed is expected to maintain its bond buying program. that devalues the dollar. the dollar hitting a 14 month low today. that pushes commodities higher. the precious metals complex is higher ahead of the fed. gold prices up. silver prices up.
so that safe haven play is coming into play ahead of the fed right now. a lot of money is flowing into the commodities markets despite the fact that we continue to see some weakness in the stock market. certainly the money is looking for someplace to go, guys. it is looking at the commodities market right now. sort of a place to put your money if you think fed will keep doing what it is doing and dollar will keep going down. traders are bullish on commodities. back to you. lori: we have a huge balance sheet on federal reserve. they're not backing off anytime soon, that's for sure. melissa: blackberry unveiling two new versions of its smartphone and a new name. we have a research analyst that was at today's event. blackberry 10 looks like it is ready to take on iphones and an droids but i wonder if too many consumers jumped ship to the competition already? what do you think? >> that has been my call. i think it is too late for bb 10. the easy part in a way is over. everything they have done up for now they're in control. they can design the software. they can design the
hardware. they have to go out to sell it. that will be a lot harder than it was to build and building it was three years late. the big issue for rim heretofore they're profitable because they're a services company. they generate $4 billion a year in service revenues. about 2 billion almost in ebitda. that is almost all their profits. they have never been a hardware march begin company. as they said in the last earnings call they will start to trickle down that services fee and eventually it could go away and become manufacturer of hardware. melissa: that is also a worry. i'm one. people that still have a blackberry because i don't like to type on an iphone. i need the keyboard and clinging to it. people nodding. lots of people feel that way. is it smart for them to go out and chase this touch-screen model? >> well, i mean, the numbers kind of don't bear out what you say. people often talk about wanting the keyboard and rim, absolutely if you want a keyboard is the guy to go
with, you but numbers globally don't see to keyboards being important although they have a new keyboard phone. for the loyalists they will always have a market. but again the problem is they used to make a lot of money on the margin with loyalists and today they don't. the other issue a lot of their growth over last few years has come from overseas where they compete against very low cost android phones. melissa: you were there in person. is there anything they did or said that surprised you or impressed you being there in person? >> the funny thing is we've been seeing this roleout for three years ever sit the bought the company qnx we've seen bits and pieces of the software. the software that runs the playbook was based on the same software we saw today. they had developer events over the years. we didn't get that much new. the face time application that competes with apple is augmented by a screen share which is pretty innovative.
they have a lot of features they showed. not necessarily a lot of specifics. i have a hard time finding them get customers back. melissa: give me your bottom line on this? the stock is up more than 200% since it was in the death spiral. do you think it topped out here? would you sell it? >> we downgraded a day or two before the last earnings call because it had doubled from our last upgrade. we were worried about the execution risk going into the launch. then we saw sort of another prelaunch cycle up which happens a lot with consumer tech stocks and we're seeing the sell on the news. i think there is a lot more execution risk from here over the next couple years than they actually had before this. melissa: dana, thanks so much. >> thanks for having me. melissa: so is there anything on youtube you would pay to see? i don't know. details on the site l site's new push for a video subscription service. lori: whether we like it or not, tax season news kicking off today, two weeks later than normal.
private sector hiring in january. checking the dow industrials right now, we are down just one point. shares of amazon are higher after the company's fourth quarter gross profit margin surprised wall street. they came in just over 24% compared with expectations of about 22%. after the bell the online retailer reported a profit of 21 cents a share, 7 cents shy of expectations. while revenue was up 22% over a year ago at $21.27 billion, it also fell short of the estimate of more than 22 billion. toyota is recalling more than one million cars for faulty airbags and defective windshield wipers. most of the recall affects corolla models. that's the latest from the fox business network, giving you the power to prosper
processinging your individual tax returns. it is two weeks later thanks to congress battling it out over the fiscal cliff deal. joining me the executive director of the h&r block taxics statute. cathy, welcome. k. >> thank you, lori. lori: if you file your tax return today, when should you expect your refund? >> so, if you file your tax return today, you can expect to get your refund within 21 days. the irs has a new, updated website called, where's my refund? you're able to go out to that website or you can use our mobile apps to be able to get a more personalized update of when you can expect your individual refund to arrive. lori: so, a 21-day expectation for a refund if you file today doesn't sound all that long. well within a april 15th deadline and within a month's range. how does that affect people? how impactful is it? >> because of the two-week
delay in the start of the filing season there are many americans who typically file in january, who would expect to get a refund and so by starting two weeks later, it means that now they're going to be waiting that much longer to get their refund. lori: are really that conscientious. i don't mean to be sarcastic here. aren't more people to push it in the last minute or file or even apply for an extension? how does that all net out? >> well, yeah, it depends on your individual tax situation. if you're expecting a big refund, then you're going to file as early as possible, get that money as quick as possible. >> good point. so there are a couple of forms i understand the irs. will not update until february or march. those include some of the very popular family-friendly education relates tax breaks. what are those all about and what kind of delay in refund possibly would those people be looking at? >> so just to be very clear, there are a set of forms that the irs had said will be late.
they will be ready in late february, early march. but 98% of american taxpayers don't have to wait for those forms because they don't apply to them. now just the other day the irs told us that they need a little bit more time to finish programing the american opportunity tax credit. we know that's a very popular form. last year, about 12 million americans took that credit for about $27 billion worth of tax credits. however, that one won't be quite so delayed. lori: they expect -- okay. >> they expect that ready by mid-february. lori: good info. is the irs changing the way the order goes through tax returns? >> if they are, if the irs is changing the way or the order of processing their tax returns, that's not something that they have publicly shared with us.
what we do know is that in, starting on january 26th, we had bee gun some early season testing with them, with live returns that we had stocked up and ready did to submit. everyone in the industry does this. and so now those returns that we were able to submit early through testing we expect we'll start getting their refunds issued a little bit sooner. so there is some good news coming for people who already had their returns prepared and ready to go. lori: cathy, thank you so much. of h&r block. i can't believe it is tax season. i can't believe so many people are diligent about filing on time. melissa: good for them. it is quarter toe. as we do every 15 minutes let's check the markets. nicole petallides on the floor of the new york stock exchange reporting names after the bell. nicole? >> that's right. we'll look at a few names we'll watch closely between now and the closing bell and after the bell when we get their quarterly reports.
conoco phillips is down half a percent. it hit a 52-week high. traded as high as 52.05. it is up 18% over the last year or so. it is one we'll be watching in the 4:00 p.m. show. how about facebook? another one to watch. we're watching this one gain over 40% in the last six months. this was a $17 stock, you may remember last september. and we'll be watching for the mobile growth. that is something that has been very key for facebook. $31. up 1.2%. don't forget this was may ipo, $38. so it certainly has swung around dramatically. it is in the $17 range. now back in the $31 range as everybody eagerly anticipates the numbers after the bell. back to you. melissa: nicole, thanks so much. youtube won't be totally free for much longer. they are preparing to offer paid subscriptions for certain content. lori: my goodness you pay
for that? melissa: according "ad age" they based it because of high demand on video producers. they reached out to producers and asked them to be part of the subscription channel service. the first paid channels are expected to be available this spring and subscriptions will range between a dollar and $5 a month, cash video channels. i'm he is ifing. i don't know. maybe? one major concern of president obama's health care law was cutting costs by cutting care and now a new hospital recruiting video show those concerns may be coming home to roost. the fox business exclusive is coming up next. lori: a space odyssey or a space oddity? act body spray's new contest to turn you into a astronaut and send you into space smelling great. ♪
lori: band-- brand new video obtained exclusively by fox business show agnew jersey hospital spoofing health care reform and how it could make money by not readmitting patients. here is liz macdonald with emac's bottom line. >> here is the video from the mortise town, new jersey, medical center. ♪ decreasing readmissions sharing the saving with practices sure seems fair ♪. ♪ long as we follow the policy set down by medicare ♪. ♪ cms is dreaming of.
>> what they're dreaming of there, acos, accountable care organization has federal standards in it for quality control but cost control. we spoke with doctors at the hospital here. so this is what they're saying. this aco which the hospital is member of rewards doctors for delivering less care. also decreases access to care. totally opposite what the president wanted, increased access to health care. less patients readmitted, the less tests, less exams, less referrals to other doctors the more government medicare money the hospital and doctors can keep in the form of profits and bonus pay but the hospital is talking to fox business saying, look this is fun spoof, that is their word, about preventing readmissions back into the hospital as you saw. certainly not met as a mockery. it is about working together, partnership, taking better care of patients. we talked to gentleman that runs the hospital. he feels like the video is taken out of contest.
he says the laptops given out there is for the health information exchanges and money changing hands is basically cost savings, get this, the hospital splits with the federal government. so they basically pocket more money from cost savings they have to share half of that with the federal government which is interesting detail there. lori: are the people appear in the video actual hospital workers? >> yes, great question. a woman pretending to be patient trying to get back into the hospital for more care and she is being blocked and barred from being readmitted. so the name of the game here for the baby boomers as they gray, and the future of health care, managing your illness at home with physicians assistants and nurses helping you. that is how they do cost savings. medicare is trending to be the second biggest budget line item surpassing defense in a few years. that is the push behind acos. 106 are operating in 40 states. this is the hospital's take on the new health reform network.
lori: that reminds me of eddie murphy, buck wheat sketch from "saturday night live." isn't that the song. >> that is from --. lori: they a spoofed. i'm older that's all. >> no you're not. lori: thank you, liz. >> thank you. melissa: leave a man, come back a hero, what buzz aldrin is telling people in the axe body spray for the male grooming company axe. they are sending one lucky person to space. the winner of the contest will be drawn after the super bowl in february 3rd f you're not chosen, don't worry, unileft veer will select 21 other winners during a year long, 61 country promotional campaign. winners blast off sometime between the drawing date and december of 2020. lori: speechless. melissa: this is bizarre. if you don't go you get $82,000 in cash. that is what it is. lori: i will like that. melissa: that is bizarre. anyway. lori: what is the fed's next
futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade. >> here we are trying to get to 14,000 on the dow but we're slipping in opposite direction, not bys as much as you think despite the gdp number. we're down 12 points right now. lori: the rally stopped dead in its tracks. analysts don't seem all that concerned about the print. this is the first read on the fourth quarter. we'll get two more. melissa: negative gdp, who cares? no big deal. lori: it is government spending, a lack or pull back in government circles could be a good thing. sequestration is still happening after today. we might get further
spending cuts. maybe good to preserve the rating. who knows. ashley: you're on a roll. we have fed minutes coming up in about 15 minutes we think literally. we're not expecting any major news statements but what they say is very important to the markets. >> have a great hour. ashley: ladies thank you. good afternoon, everybody. i'm ashley webster. tracy: i'm tracy byrnes. as ash mentioned the stocks on the fence waiting for the fed statement now just minutes away. what if anything will the fed signal about the future for quantitative easing? and when is it going to happen? we'll have extensive coverage of the fed decision and market reaction with the all-star panel coming up. ashley: a new day of research in motion, the company actually changing its name to blackberry, seems to make sense. designing its biggest products. so why are rim shares back to the losing ways. we'll hear from the ceo this hour. tracy: name change ain't going to do it. plus a fox business exclusive with a hot stock ceo. com vault systems hitting a
record high, surging 10%. that software firm's chief. how it ounce frommed wall street estimates. we like to hear that. ashley: great story. the markets are gearing up for the fed decision do you out in just minutes. we have it covered. nicole petallides from the floor of the new york stock exchange. sandra smith at the pits of cme watching commodities. let's start with nicole. let's be honest. hovering near the flat line the whole session. >> there is plenty of action. there are a lot of story stocks. we got economic reports today that were dismal. you didn't expect gdp to be as bad as it came in. that was somewhat of a disappointment which pushed stocks to the downside for the dow jones industrials only to see it move back and forth. we eagerly await to hear from the fed at 2:15 eastern time. the dow is down 10 points but went over the unchanged line. moved into the green. we're 50 points away from dow 14,000, right?
all-time highs are not too far off from that point. tech-heavy nasdaq composite is pulling back. we had a lot of movers from amazon to research in motion, facebook, just to name a few. we want to look at the 10-year bond which everybody continues to follow very closely. the dollar is lower. gold is jumping. the ten year, 2.02%. that yield is something everybody is continuing to focus on as well as it is above that 2% line. back to you. ashley: nicole, thank you very much. of course we'll be following the markets as we hear from the fed. tracy: absolutely. let's turn to the commodities markets now. oil trading near four-month highs ahead of the fed decision. we head up and over actually to sandra smith in the pits of the cme. sandra, out in chicago. hey, sandra. >> hey there, nicole, sorry, tracy. i definitely want to update viewers on comments i got out of the fed funds future pit down here in chicago. they're saying there is more talk in the trading community about possibly hearing some more, some more easing language coming from
the fed. i don't know exactly how to put that but they are saying that because we're getting a better news out of europe, that we might hear the fed start to hint at not all together tightening. there is no movement in the fed funds futures specifically but maybe the language might start to change here with some improving economic outlooks happening over in europe and other places in the world. that being said the trade down here is by the commodities. -- buy the commodities. look what is trading down here. gold prices oil prices silver one of the best performing here right now. they are flowing out of the u.s. dollar because the expectation that the fed will continue its bond buying program that will devalue the dollar and push these commodity prices higher. the entire energy complex is bid. it is in the green. precious metals in the green. also take note, while the euro has been strengthening against the u.s. dollar, the vix, volatility index, that
fear gauge in the market, which has been sitting at historic lows near 13, it is up just a bit ahead of this announcement showing there is a little bit of nervousness considering how high the stock market has gone and where it sits going into the fed announcement. back to you guys. tracy: sandra, we'll see you in a bit. thank you. ashley: this morning's fourth quarter gdp numbers surprising everyone showing the economy actually contracted last quarter. what does this mean for american businesses? our very own jeff flock is in illinois with that part of the story. jeff? >> you might think that main street would be shaking in its boots over this but i'll tell you, we love to come to main street because it gives us a real perspective. you're looking at a cooking class in a shop in suburban chicago. she started this after 30 years in the corporate world. you don't think that the gdp number you saw today matches what you see on main street in glen ellny, illinois? >> it doesn't seem to.
we've seen optimism in the holiday season and january. >> spent 30 years. part of it as coo of united health care decision. you watched the fed announcement very closely back then. does it have that much of an impact on main street? >> now it is more of a trickle down effect with us. what is happening with interest rates impacts home building and improvement in people's homes. they will come here and shop when doing something new with their homes. >> ultimate discretionary spending perhaps. over here these ladies and men i think too engaged in a cooking class. you wouldn't do that if you felt negative about the economy perhaps, folks. ashley: jeff flock, that's a very good point. if you're that worried would you be going to cooking classes? looks interesting, does it. tracy: can't afford to go to restaurants. you have to cook at home. ashley: my wife would love me to go it that class. weak reading of the u.s. economy coming ahead of the first fed policy decision of the year so what can we expect? let's bring in the all-star panel.
we have former senior advisor an columnist at federal reserve. now a resident scholar at aci. mark luschini, january any month come from -- janney montgomery scott and. i don't know what we expect out of the fed with regard to any changes. steven, what are you expecting? what are you looking at in particular when you hear from the fed in just minutes? >> well i'm really not expecting anything new at all from today's meeting the fed already told us that they plan to keep short-term interest rates on hold, near zero through 2015 and they have an ongoing asset purchase program they're continuing to implement. i think there will be very few changes in the statement. tracy: mark, you know we've seen the quantitative easing from the fed do nothing but benefit the market. we haven't seen the economy take off in any stretch. if you could talk to the fed
right now and ask some questions what would you ask? >> what would be the condition that would have you alter your interest rate policy that we would know how delicately you're going to ultimately be able to unwind the asset purchase program that is underwriting a low interest rate environment and basically providing a frontal lo bottom my to the bond market. as well as the how long we'll see tame interest rates such that the bond market doesn't get spooked and we see a jump in interest rates which could happen at unwarranted period of time and thwart the anemic economic expansion that we have underway. ashley: gus, i wanted to ask you, we have a fresh crop of reserve bank presidents for the new year voting on policy decisions. does that change the dynamics or the conversation at all? >> it might change it a little bit. i think the kansas city fed president george has expressed skepticism over the fed's decisions lately. put on the other hand richmond fed president lacker, who has been a big skeptic is leaving voting
members. i don't think it will make a huge difference overall and i think bernanke is calling the shots. tracy: that's for sure. the whole lobotomy thing is interesting. the whole thing is what worries people the most. ashley: that is why perhaps the fed may gradually reduce qe, rather than just whip the punchbowl away. steven, mark, gus, stay right there. this is the first salvo on all this. the fed's statement is moments away. what will the fed say and how will the markets react? that's next. tracy: as we do every day at this time of day and head out to break, let's look how oil is trading. the dow only down about five points right now. and oil, pretty much unchanged. $97.72 a barrel. we'll be right back.
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federal reserve policy decision. it is very secret. we'll hear from peter barnes who will read the statement. we can't intro him. once we hear peter talking we'll go straight to him. prior to the statement, nicole petallides, sandra smith, steven olin, mark luschini and gus foshay. we're seeing the market drift a little bit. are you expecting a anything once which hear the statement from the fed. >> on the contrary, everybody is expecting the status quo from the fed. they're eager to hear what the fomc will resay today? buy back mortgage-backed securities, et cetera. we're watching what they may say. the language is very key. that is why traders start going sshh. gyping 2:00. they have already begun doing. they wait. they don't want to miss it. tracy: hey, gus, what would you ask? we've gotten some decent economic data. gdp numbers if you dig into them not so terrible. economy is getting bert.
maybe we don't need all this quantitative easing? >> certainly want to know what their plan is for quantitative easing easing and the rest of 2013. will they end at middle. year. middle. year. will they withdraw it gradually or all at once? and under what conditions will they withdraw. what is the outlook for inflation? are they concerned about that at all, or are do they think they have it uncontrol? ashley: tracy brought up before the commercial break, you're supportive of the fed's qe policy you could argue or the critics argue but the markets have done great but the actual economy itself has not and there has always been suggestion that is the fed should start charging banks to park their money in order to get them to lend and get this money out into the economy. has it really helped the u.s. economy as a whole? >> ashley, clearly lowering borrowing costs has appeared helped. that is impetus what happened to the housing market to a degree.
the fact of the matter it is not liquidity problem or low interest rate problem, a demand problem. there lies the disconnect. banks flooded with cash. borrowing costs are historically low. what is keeping at bay, activity, seem lack of confidence among businesses and consumers knowing they have to spend and visibility to where the next weeks, months and or years are going. tracy: steven, at what point do we we worry about the fed's balance sheet? it is getting bigger by the second, yet we keep creating these purchasing programs, adding more to it? when does it anybody some pause? >> the balance sheet is huge. it is already $3 trillion. probably on its way to $4 trillion. there is an issue how it will be unwound. ashley: let me go back to to pick pup on something. should the fed be concerned about inflation? i know, it intbeen an issue so far, that's for sure.
in fact anything deflation was the word for a while but they seem to have a lot of wiggle room, don't they? >> they do. financial markets, if we look at tips, those indicate very few concerns about inflation five to 10 years out. core prices are falling on, excuse me, core inflation is slowing on a year ago basis of the so i think the fed has some room there. obviously they need to make sure things don't get too out of hand and they're watching closely and i think they have it under control for now. >> you guys, i wanted to jump in for a moment. qe infinity and the question, right, we call it qe2, qe3, qe 4, qe infinity and how helpful is it been. >> no change in fed policy. no change in fed policy. quantitative easing continues with no change in short-term interest rates. let's go right to the economic analysis of the latest fomc statement. quote, information received since the federal open market committee met in december suggests that
growth in economic activity paused in recent months in large part because of weather-related disruptions and other transsytory factors. employment has continued to expand at a moderate pace but it unemployment rate remains elevated. the housing sector has shown further improvement. inflation has been running somewhat below the committee's longer run objective apart from temporary variations that largely reflect fluctuations in energy prices. longer term inflation expectations have remained stable. the committee expects that with appropriate policy accommodation, economic growth will proceed at a moderate pace and the unemployment rate will gradually decline towards levels the committee judges consistent with its dual mandate. although strains in global financial markets have eased somewhat the committee continues to see downside risks to the economic outlook. the committee also anticipates that inflation over the medium term will likely run at or below its 2% objective. to support a stronger economic recovery, and to help insure that inflation
over time is at a rate most consistent with its dual mandate the committee will continue purchasing additional agency mortgage-backed securities at a base of $40 billion per month and longer term treasury security at a pace of 45 billion per month. these actions should maintain downward pressure on longer term interest rates, support mortgage markets and help to make the broader financial conditions more accommodatetive. the committee will closely monitor incoming information on economic and financial developments in coming months. if the outlook for the labor market does not improve substantially the committee will continue its purchases of treasury and agency mortgage-backed securities and employ its other policy tools as appropriate until such improvement is achieved in the context of price stability. to support continued progress towards maximum employment and price stability the committee expect that is a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens. in particularly the committee decided to keep
the target rate for federal funds at zero to a quarter percent and currently anticipates this exceptionally low range for the federal fund rate will be appropriate at least as long as the unemployment rate remains above 6 1/2%, inflation between one and two years ahead of its projected to be no more than a half a percentage point above the committee's 2% longer run goal and longer term inflation expectations continue to be well-anchored. in determining how long to continue a highly accommodative stance of monetary policy the committee will also consider other information including additional measures of labor market conditions inindicators of inflation pressures and inflation expectations and reading on financeal developments. when the committee decides to begin to remove policy accommodation it will take a long balanced approach consist with longer run goals and inflation of 2% the vote on this policy statement was 11-1 with one of the new members of fomc, esther george, the president of the kansas city federal
reserve voting against this policy action. she said she was quote, concerned that the continued high level of monetary accommodation increased the risks of future economic and financial imbalances over and over time could cause an increase in long-term inflation expectations. peter barnes reporting from the treasury. back to you in new york. ashley: peter, thank you very much. as expected really, same sort of language we've seen. from the december meeting. let's bring in the panel. begin with steven. steven anything in there that surprised you? or was pretty much as expected? >> i thought that was totally as expected. ashley: yeah. >> it is just steady as she goes implementing the policies they already have in place. there had been a question whether they would provide further guidance about the endgame for qe but of course they didn't because there's too much disagreement among the members of the committee for them to have a consensus view at this point. tracy: you know, mark, we knew basically that esther
george would come out and be the one dissenter. she will not have much of a leg to stand on, is she? she will need more support behind her or this is going on forever? >> i agree with you, tracy. that was a very dovish statement. tracy: right. >> we know the fed governor constitution is very dovish in terms of the way the fed voting members of the committee lean. the fact of the matter is we'll see qe3, qe 4, however you define it well into 2013 if not beyond. ashley: nickel, -- nicole we'll bring you in here the dow is down 15 points on the dow. what are you hearing? >> the most interesting part, we were standing right here, the unchanged line. then you got in the numbers and them talking about this. and talking about strains on the global markets and downside risks. we immediately sold off are got to these levels, down 15 points. when they talked about how they were going to support the recovery, with purchases in mortgage-backed
securities and treasurys of 40 billion and 45 billion per month, then you started to see we moved into positive territory. we know unemployment remains elevated. you start to hear about the downside risks and still concerns about unemployment then we sold off. the fact that the fed is there with the fruit juice, the hi-c, whatever you want to call it here you go, money, money, then we go back. tracy: sandra, let's grow over to you. what is the reaction in the pits by you? we saw gold up 1%. >> i have to things as you see it. the stock market pretty much unfazed by the fed statement. down here you will definitely hear some volume picking up on the floor. these pits did fill up ahead of this fed announcement. we're seeing movement in the bond market right now. short-term interest rates pared their earlier losses. the fed obviously keeping the stimulus in place right now. so you're seeing a big reaction in the bond market. also the long, long-term bond also bouncing back just a little bit, paring their
earlier loss. i want to point out gold prices. gold is now up about 21, $22 on the session. gold at session highs while the euro is gaining more ground against the u.s. dollar. on this fed's announcement the u.s. dollar making a new 14-month low, against the euro currency, guys. that has a big impact on our markets. ashley: it certainly does. let's bring in gus foshay. gus, what peter was saying, he was saying essentially we'll continue the existing programs and other policy tools as appropriate. what other tools do they have in the proverbial tool box left? >> well, it's unclear. we talked about raising the interest rates that the fed pays on reserves. that
from money markets and short-term fixed income instruments knowing that you will be buried from now until probably at least 2015 and beyond, that means people will venture into risk assets and therefore equities. particularly high dividend equities. i believe this is the way this thing will progress lynn ear alley for months to come and spark the great rotation. ashley: to nicole's point, we're seeing markets sell off. yes the fed is therefore whenever you need us. downside risks whatever the language the seeing the dow drop 21 points. >> one last thought. when we talk about confidence, you talk about investor confidence. talk about consumer sentiment. that we have a tough economy. coupled with taxes that are something that is in their payroll tax.
everybody is seeing money coming out of their weekly paychecks. so people are worried. this highly accommodative fed has to continue with this, at least for time being. ashley: steven, we talked about the massively ballooning balance sheet of the fed, 2.9 trillion trillion. adding continuing to add this 85 billion a month, and yet i don't really hear, other than from esther george, a concern about that. should they be more concerned? >> you know at this point i don't think they should be more concerned but they need to keep their eye on the ball because we do need to be focusing whether there are going to be disruptions from purchases in the asset markets. whether think feel, don't think at this point, costs have gotten very large. tracy: gus, market is down 28 points right now. somebody is not happy about what they said and yet, we still have money coming in.
there has to be concern out there, that economic data coming in, better and better. this could turn the spigot off sooner than everyone expects. >> well i mean, today's gdp report make that is a little bit less likely. tracy: right. >> one of the things they said, we think that this is a one-time aberration. i think that was pretty clear in their statement today. certainly growth in the second half of 2012 is only about 1 1/2 at an an all rate. that is -- annual rate. this is still pretty disappointing. we're down four million jobs than where we were prior to the recession. i don't think there is danger of fed turning off the spigot anytime soon. they made very clear they want unemployment lower and we'll have to see how it place out. they will continue to be aggressive until they see the une ploit rate down 6 1/2%. tracy: the dow is dunn 27 points. special thanks to nicole petallides, sandra smith, steven ol' lander, mark luschini and gus foshay. ashley: we should wait a week's time to get a better
sense. we're tracking the markets and the fed all hour. rim reinventing itself. its biggest product as well. is it enough to win back investors and customers? >> data software firm com vault systems surging to a all-time high on quarterly results the chairman is here in a fox business exclusive. let's look at some winners and losers as we hid out to break. dow down 27 points. s&p 500 winners and losers. we'll be right back.
exxonmobil at the bottom right now. as is cisco systems and 3m. the tech companies having issues today. that's the floor of the new york stock exchange. nicole, you are one with us during the whole thing. love to hear his thoughts on all of this because the market took it in stride, moved a little, not a whole lot of movement. nicole: ben willis can break it down little bit for us. you're right, we didn't move around a whole lot. what we do make of the fed comments? >> not a lot. you will look at something to pick out of the headlines it would be the slowdown in growth. that is a pretty important story. the world growth we have seen not significant, not what we needed to see. the fact it is now slowing down is not a good sign.
nicole: household spending was higher. the other thing i talked about was global risk, and obviously that remains the wild card as well. what is interesting is how they plant the market. you noticed the dollar at 14 month lows and the euro at 14 month highs. >> this is a currency war, clearly. trying to devalue their own currency. japan now has suffered through, japan's currency is starting to rise, they ar they're afraid oft having a direct impact. tracy: thank you. back to you guys. nicole: nothing really riveting. ashley: for more on the fed statement, let's bring in gerri willis, reports of the "the willis report."
what did you make of this statement? >> i think ben willis is right, we knew it was coming, we saw it around the corner and what is interesting is people are focused on the economic and the gdp report down a tenth of a percent this morning. the "wall street journal" reporting you have to go all the way back to 1977 to see a single quarter of negative gdp expansion during the growth in the economy. that tells you these very unusual and that is why they may be nervous with slow growth ri risk, use those kind of phrases. i look at it from the vantage point of the average consumer, not a trader. the trader. ashley: that is who would benefit. >> unless your 401(k) is doing well. that is cold comfort.
you don't have a job, you can't get a loan, they are concerned about those issues. the famous stanford economist said what the fed is doing is a drag on the economy, keeping rates so low, what are they going to make on loans? ashley: good point. we be talking about this tonight? >> we will be talking about this. talk about buying goods made in america. how do you know they are made in america? a lot of lying going on. how to know that was really made in america and how to profit on the other side if you want to invest in companies that make products here. ashley: thank you very much. don't miss "the willis report" tonight at 6:00 and 9:00 eastern on fox business. tracy: on deck, a fox business exclusive.
this video makes a mockery of patient care after so-called reform. next. ashley: and a record high as chairman and ceo is here. as we do everyday, look at the 10 and 30-year treasuries. we will be right back. (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everi'm with scottrade. me. (announcer) scottrade. awarded five-stars from smartmoney magazine.
adam: i am adam shapiro with your fox business brief. as expected the federal reserve announced no change in fed policy. the central bank wrapped up their meeting announcing interest rates near zero until the unemployment rate falls to 6.5%. as long as inflation doesn't top 2.5%. the fed will maintain the bond buying program. research in motion unveiled the new boeing phone and operating system. coming as rim hopes to claw its way back into an industry dominated by apple's iphone and samsung galaxy. rim is changing their corporate name to blackberry. the stock will be trading under the ticker symbol bbry. the earnings come as boeing dreamliner plane has been grounded. this latest from the fox business network giving you the power to prosper.
tracy: brand-new exclusive video shows a new jersey hospital on how health reform can make more money for doctors not admitting patients. liz macdonald, you found a great story. >> a video spoof made by the moorestown medical center, they're a member of health reform to a cannibal care organization. you will hear the term aco. when you listen to the lyrics you understand how the health reform bill will basically create cost savings that go back to the hospital doctors and the federal government. let's take a listen. >> build it for all the right reasons. aco. sharing the savings and
practices sure seems fair. as long as we follow the policy set down by medicare. >> what that refers to is the government's center for medicare and medicaid services. we spoke with staffers at the hospital, here's what they're telling fox business about the video spoof. the key cornerstone of health reform, the countable care organizations. these aco reward doctors and medical workers for doing less and decrease access basically to patient care and opposite of what the president wanted in health reform which is increased access to care. essentially the less the patients are readmitted if you have any complications, and also the less exams or referrals, the more government medicare money there is in the pot is split
between the doctors and the hospital. they said yes, this is a fun spoof of preventing readmissions as you so. not meant as mockery. it is about working together, it is about partnership, taking better care of patients. since then we talked the president of the hospital and he is telling fox business the video is taken out of context. you will see laptops being given around among hospital workers. he says when you see the money exchanging hands that the aco splits have that money with the federal government. this is the future of health reform essentially you will see more of them and operating in 40 states, it means hospitals want you to manage your illness at home possibly with the help of assistance or nurses. wwe're watching this developing story. we will bring it back to you
guys. tracy: enable you talk to, they say it will be awful. liz macdonald, thank you very much. ashley: singing along with that, weren't you? tracy: i am a country girl. ashley: releasing the third quartethird-quarter earnings ths morning reported record revenue facing analysts estimates. up 10% right now, 10.33% hitting a new 52-week high. the software company specializing in data organization has been a success story of private equity investment so the question is what does the future hold? joining us now, chairman and c ceo. thank you for joining us and congratulations fo. >> thank you very much. ashley: operating income up 62% year-over-year, to get the struggling economy, how did you manage to do this? >> thanks, ashley.
appreciate the comments. commvault is a software data focus. data has gotten so big and changing so fast, difficulty backing it up, accessing it, making sense out of it and we help them do it. ashley: you say you have made strategic investments as well, what are you talking about? >> traditionally we started as a company data protection, but we built the company starting in 1998 thinking about the data model. we thought about this 15 years ago it would grow and things would get much more complicated.
so the company has been evolving from data protection and we're about to announce an extension to what we are doing so we can get into managing the mobile workforce so any individual can have access to his or her files from any device anytime anywhere. or major companies can put analytics. i will extend this in concept. your record is scattered all over. but what if you had one suppository. ashley: i wanted to mention private equity. i wanted to bring that in two dell reportedly or rumored to wanting to go private. do you think that is a good thing? >> it got into some trouble.
i was part of a private equity firm, and we basically went in, i came in as ceo private equity funding and we were unable to completely redo the strategy as a private company so we had the money to take division of the data company. ashley: away from the microscope of wall street. >> dell was going through a lot of restructuring. michael dell making the decision he would be better off doing that. we wish him well. ashley: del at one time was rumored to be interested in commvault. >> a lot of companies interested. too late. ashley: congratulations. thank you for being here. tracy: that is good stuff. weigway to 2 pounds
tracy: a quarter until, stocks every 15 minutes, nicole petallides still on the floor looking at some tech names but the dow down 20 points. nicole: down 20 points, still above 13,900. we have come a long way, and we are holding steady at these very high levels. we have talked about tech and research in motion. how about earnings after the bell. facebook first of all will be one we continue to watch. 40 something dollars in stock all over the map. right now up 1.4%. mobile growth will be very key for facebook. and we will take a look at
qualcomm. something that is very interesting. sharing the pressures recently and apple has been cutting back on concerns of iphone parts and orders and commands and that is something that will directly affect qualcomm. up about a half of a percent, a nice one year chart for you, but we will certainly be watching that as well. tracy: we will see you at the top of the hour. keep it here for full coverage from facebook, qualcomm and electronic arts at 4:00 p.m. eastern time here on fox business. any new games? ashley: bad weather causing travel delays. that story next. tracy: as we head out to break, take a look at some of the winners and losers on the nasdaq. [ woman ] if you have the audacity to believe
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ashley: so if you'reeheading to an airport, listen up. long delays. that is common. but air-traffic atlanta, chicago, new york really has a wave of wild weather moving through the country. joining us now from the weather center. rick, this will take a while, isn't it? >> the rest of the afternoon will be a washout. end of the year reports from new york down through atlanta, atlanta getting pummeled right now, airports will be delayed and this is a thick line of storms to get over, so planes cannot land and cannot get out of here.
a lot of severe weather with it. tornadoes firing today. five of them across north georgia. and right now atlanta being pummeled with very heavy rain. atlanta not looking at a tornado right now, but certainly very significant wind. all of these storms pull through, clearing out midnight across georgia and the south east. we will replay this for the northeast and things are getting worse this afternoon. a big line of storms moving through overnight toward new york city on thursday morning at 6:00 still seeing the rain near boston. cold and windy. incredible temperature swings and we are seeing it right now. 94 degrees, january 29th, 94 degrees. more in towards wisconsin and parts of iowa doing with pretty
significant winter weather as well. ashley: yikes. tracy: i am a mother, but this is how people get sick. it goes up, it goes down. ashley: that is true. look at library unveiling new smart phones and a new name. shibani joshi has the details. >> the weather and research in motion a stock-price kind of the same. it goes up, it goes down, it has been going down the last five trading days or so. the anticipation has been high for today's blackberry 10 unveiling. i was there in the chance to join 1000 other influentials in the technology and business media sphere. a great event, two big phones now put out into the market. reviewers are digging into the device and overall so far the reviews have been positive. comparing it to the iphone and even samsung proxy.
the price point in the middle of the road at $199. an eight megapixel camera, we should have a full screen comparing everything. a 4-inch screen. the apps are lacking, part of the equation, only 70,000 apps compared to 800,000 for the iphone. available in march. just because the phones are out doesn't mean the company is safe. they are issuing a note saying today's product release actually makes the company a more interesting target for acquisition. take a listen to what the company ceo had to say in response. >> we are continuing our review, but in the position of rim, the focus toward what can we do, what positions should be doing to be a leader in computing.
>> they want to be focused in mobile computing, but they are entertaining strategic opportunities and they will continue to do. the newsman not be finished with this one. ashley: interesting stuff. interesting stuff. tracy: the website hacking attacks, countries are spending more and more money to protect themselves. cyber security firm whit whitehd has seen new bookings over the past year, doubling the workforce. joining us now, ceo. i'm glad you are here because jamie cyber security should be on the front page of every company's agenda. and it's not. how come? >> is a huge problem, and it is for cios in fortune 400 companies. chief information officer.
tracy, to somebody like you is a lot like buying a life insurance policy. just in case. but god forbid moment. were you going to do? you're going to hack my system? >> whitehead created the first platform to be able to test websites so you can identify those weaknesses, those flaws in your software. we call them vulnerabilities so you can repair those within the code before the bad guys come and exploit them. >tracy: do you hire hackers? >> we have a technology that form, a team of security engineers that configure and customize the platform, the technology because of the website is unique. tracy: i know you're hiring tons of people, but how do you stay ahead of the hackers? >> it is a cat and mouse game, but we have researchers looking
for new attacks so we can create new tests to make sure our customers are safe. tracy: are there trends in the type of attacks companies are getting? >> there are more and more attacks happening. they are not just against the most critical websites that do large amounts of transactions. companies are beginning to attack very small, seemingly innocuous sites using them to get access to the critical data. tracy: if they attack my measly little website, they will attack anything at this point. thank you so much for being with us. why would you attack my e-mail? i have nothing. ashley: they found out. tracy: exactly. ashley: liz claman going through the last hour. out with the 2013 game plan. discussing the best place for the new year. "countdown to the closing bell" is next.
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